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Residential Real Estate Transactions: Who Is Responsible For Paying What

Posted Dec. 25, 2011, 1:09 am

Michael Edlen / Real Estate Consultant

Often sellers and potential buyers ask about the various expenses in the process of the sale or purchase of a home. The following is a summary of the traditional distribution of expenses associated with these transactions. It should be noted many of these items can be negotiated by both parties as part of the Purchase Agreement, excluding some expenses that may be required by the City or the buyer’s lender to be paid specifically by the seller.

While the above are the customary distribution expenses associated with residential real estate transactions in Santa Monica, the other party could cover many of these. For example, a buyer wishing to make their offer stand out above others in multiple offers, might propose paying for the seller’s portion of escrow and/or other traditional seller expenses. Alternatively, a buyer wishing to conserve cash may request that the seller cover some of what traditionally are paid for by the buyer.